Harsh Goenka lists out 5 reasons why not to invest in cryptocurrencies in India

Harsh Goenka, Chairman of RPG Enterprises, states 'volatility', 'regulatory factors' and the fact that cryptocurrencies do not derive value from any asset are the sole reasons why he will never invest in it. However, if you still want to invest in it, he has some suggestions for you.

Earlier today, Goenka posted a video, which explains the risk of investing in cryptocurrencies, on Twitter and further said 'Why I will not invest in cryptocurrencies….'

Here are the 5 reasons why?

• Unlike other financial instrument, it does not derive value from any asset
• It is extremely volatile and gets impacted by even some tweets
• Regulating it is a very difficult thing and therefore most countries are not ready to accept it (the idea of a decentralised currency and no government is fancy but can't be reality.
• Unlike other financial instruments, where you can seek redressal from authority for any loss, you can't go for crypto
• If one takes India into consideration, RBI has refused to accept this as a legal tender and RBI is bringing a bill to ban it.

Twitterati were quick to respond to it. One said, Sir, point 1 is correct only for Bitcoin, there are other cryptocurrencies like Uniswap - which is like a crypto stock exchange, and people who hold their currency i.e. UNI get fees paid by consumers who use their exchange. No central ownership of exchange like NSE.

Another person said, Well the currency that we use today also does not depend on Gold or anything (Fiat Money), but the of volatility of crypto is a serious issue.

If you still want to invest, here is what he suggests

He further suggest, if you still want to invest in it, then don't keep it more that 5% of your portfolio.

As in the video it is further explained, Your question might be, what to then?

• Avoid investing in crypto
• If you want to invest still, don't keep it more that 5% of your portfolio.